TLDR:
- Kubik, an African sustainable tech startup in Ethiopia, raises $5.2 million seed funding.
- Investors include African Renaissance Partners, Endgame Capital, and King Philanthropies.
Kubik, an environmental technology company, has secured a $5.2 million seed funding round, becoming the first Ethiopian company to attract a multi-million dollar investment in climate and sustainability solutions. The funding was provided by leading East African venture capital firm African Renaissance Partners, net-zero focused Endgame Capital, and climate and extreme poverty investor King Philanthropies.
Kubik specializes in using plastic waste to create low-carbon, durable, and affordable buildings, which helps in removing plastic waste from the environment and promoting greener, cleaner development across Africa. Their innovative products cost at least 40% less per square meter than traditional cement-based development and emit 5x fewer greenhouse gas emissions.
The company’s Co-founder and CEO, Kidus Asfaw, expressed excitement about the funding round and emphasized Kubik’s commitment to building sustainably and affordably for a brighter, greener future. With the proceeds, Kubik plans to scale production, expand its team and market presence in Ethiopia, enhance its technology for waste tracking, and empower more female waste collectors.
Market drivers for Kubik’s investment case are strong, as affordable housing is a $2.2 trillion global business with a shortfall of over 300 million units considered affordable for the most impoverished. With over 40% of housing development costs attributed to materials, Kubik’s model of converting plastic waste into affordable building materials is well-positioned to address this challenge.
In line with its pan-African growth strategy, Kubik aims to use the funding to strengthen its presence in Ethiopia, improve waste traceability, and empower more female waste collectors. The company has recently launched a plastic upcycling factory in Ethiopia’s Adama Industrial Park and has collaborated with various stakeholders in the waste management sector to scale its operations.
